Oil Drops After Inventories Rise and Lower Demand Expected

West Texas Intermediate traded near a three-month low amid speculation about a gain in oil inventories and concern that the U.S. government’s first shutdown in 17 years will slow economic growth and demand for crude.
Futures dropped as much as 0.6 percent, poised for the lowest close in three months. The U.S., the world’s biggest oil user, began halting some official operations because of a budget stalemate yesterday. Crude stockpiles climbed by 4.55 million barrels last week, the industry-funded American Petroleum Institute said, while data from the Energy Information Administration today may show supplies gained 2.5 million barrels, according to a Bloomberg News survey.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza